October 25, 2007 Elad Bushari

So you want to invest in real estate. You want to buy a condo and rent it out for a decent cash-flow, say 7%-10% return on investment (down payment) per year, after all expenses of course. You have heard all over the media that it’s a buyer’s market and foreclosures are up; so why can’t you find a condo with positive cash-flow?

The large majority of properties currently on the market, even in the student saturated neighborhoods of Allston and

Brighton, will barely carry themselves let alone bring you wads of cash during the first year. I am even talking about the short sales and foreclosures now on the market…with 20% down! I am not suggesting you purchase something with negative cash-flow, but I am suggesting that you look for potential. You may need to invest a few thousand dollars upfront in simple upgrades like new bathroom tiles or appliances. That investment will be well worth it when you will find it easy to raise the rent. Another option is to think big. Purchase a three family or multiplex building. In the long run, you will have less expenses as all the units will be under one roof (ie: there will only be ONE roof to eventually fix). You will also have full control of the budget and running of the building, giving you the freedom you need to make the changes needed to actively increase the value of your investment.

Elad Bushari

Elad Bushari is the Broker / Owner of Bushari Group Real Estate and a National "30 Under 30" Honoree by REALTOR Magazine in 2009.

Comments (3)

  1. Jat

    In general investing in real estate in a long term investment. Same as putting money in your 401K. You have to invests some money and it might not grow as fast as you want in the short term, but you nned to look at the retuen in the long term.

  2. Good blog article – it’s amazing that 7-10% returns aren’t good enough? The fact that real estate in 2008 will surely become a DISASTER with the loss of most mortgage loan financing and NO MORE $0 Down loans. A smart Realtor must maximize their opportunity to convert MORE prospects into buyers by offering to HELP them get their bad or damaged credit scores fixed. Please feel free to send all your agents to my genuine Credit Repair Program article at: http://www.jeffboyce.net/credit-repair-and-how-to-fix-bad-credit.html. I’d be glad to help you sell more homes, by getting your unqualified buyers a real nice 30 year fixed loan.

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